Sustainable Community Buildings - Capital Terms and Conditions
Sustainable Community Buildings - Capital terms and conditions of grant (Updated January 2024)
Standard terms and conditions for grants relating to property, vehicles and/or equipment
“we”, “us” and “our” means The National Lottery Community Fund and includes our employees and those acting for us.
“you” and “your” refer to the organisation receiving the Capital Grant.
“Asset Liability Period” has the meaning given in paragraph 10.
“Capital Grant” means the grant awarded to you by us for the Project as set out in the Grant Agreement.
“Grant Agreement” means the grant offer letter addressed to you and from us which you have signed and accepted and which incorporates these terms and conditions (with any special/additional conditions we have agreed).
“Project” has the meaning given to it in the Grant Agreement.
“Practical Completion” means the later of i) the date that a certificate of practical completion (or its equivalent) is issued for any building work or ii) the date the Property is ready for the use described in the Grant Agreement. If the Project involves more than one certificate of practical completion, it will be the date of the final certificate.
“Property” means the land and/or buildings/structures to be acquired and or developed as part of the Project.
- If any part of the Capital Grant is to buy or build, refurbish, extend, alter or enhance a Property, these Capital terms and conditions of grant will apply to your Capital Grant in addition to all other conditions we have required of you.
- Unless we have agreed to grant the Capital Grant for the purchase of the Property, you must own either the freehold or leasehold interest in the Property before we release the Capital Grant.
- You confirm that you do not have any undisclosed loans secured against the Property and that you will not take out any loans secured against the Property unless you receive our agreement in writing first.
- If any part of the Project is to acquire, refurbish or build upon Property (including any extension, alteration(s) or enhancements to building(s)), you will send to us the following documents:
4.1 a surveyor’s report on the condition of the Property, its value and whether it is suitable for the Project;
4.2 confirmation that all necessary consents for the development and/or use of the Property for the purposes of the Project have been obtained and satisfactory evidence that all pre-commencement conditions (issued by the relevant Planning Authority) have been satisfied in full.
- For a Capital Grant of up to £50,000, if any part of the Project is to acquire, refurbish or build (including by way of extension or alteration(s)) upon leasehold Property, then you will ensure that the lease will be for a minimum unexpired term of 5 years from the date of Practical Completion and you will send us a copy of the lease to approve, which must satisfy us that it is suitable security for the grant.
- In addition to clauses 4 and 5, if all or part of your Capital Grant (taking into account all Capital costs in aggregate) is to be used for any building work you understand and accept:
6.1 that we will keep 95% of the Capital Grant until you have provided in a form which is completed to our satisfaction:
6.1.1 evidence that you have received any necessary planning permission, listed building or conservation area consent and building regulations consent (or other applicable consents or regulations) required for the building work; and
6.1.2 evidence that a competitive tender process has been undertaken with a minimum of three estimates received from three independent builders to ensure value for money including for pre-tendered arrangements, evidence of the tender process identifying existing contractors and details of any mini-competition between pre-appointed building contractors and, in each case, evidence of a fair, transparent and documented process (compliant with any statutory requirements applicable to the building works).
6.2 that we will make payments in stages when you receive builders’ invoices or against interim certificates completed on the RIBA (Royal Institute of British Architects) form or other appropriate invoices and/or certification in terms first approved by us;
6.3 that we will keep 5% of the Capital Grant until we receive the certificate of Practical Completion and any other appropriate building completion documents that we have advised are necessary based on the size and nature of the Project. This might include: a copy of the building regulations completion certificate, confirmation that buildings insurance is in place, copies of planning condition discharge notices etc. When available and where appropriate, you will provide the making good defects certificate and guarantees; and
6.4 that if you want to make significant changes to the scope of the building works, you must get our permission in writing first.
- If your Capital Grant is to be used for any building work you understand and accept that if building works come under the Construction (Design and Management) Regulations (Northern Ireland) 2016 (as amended from time to time), you will confirm that you have appointed a principle designer and otherwise complied in full with the Regulations.
- You understand that if you do not make payment claims for Capital Grant within three months of incurring the relevant capital expenditure, then we reserve the right to proportionally reduce your Capital Grant in line with the actual capital expenditure incurred in the claim period.
- You will not sell, lease, let, sub-let or otherwise dispose of or change the use of the Property without first obtaining our written consent, which may contain conditions which you will have to meet. If you sell or otherwise dispose of the Property, or where the objectives of the Project are not achieved for the duration of the Asset Liability Period, you may have to repay us all or part of the Capital Grant you have received from us. The amount you repay will be in direct proportion to the share of the Project cost that came from us. If you sell the Property with our consent, it must be at full market value which you have demonstrated to our satisfaction.
- We will continue to have an interest in the Property for 5 years after the date of Practical Completion and you will supply information about and allow us to monitor and inspect the Property for this period, which is defined as our “Asset Liability Period”.
PROVIDED THAT if all or any part of the Capital Grant has become repayable, or any other amount has become due from you to us, and the relevant amount has not been paid on the date when the Asset Liability Period would otherwise end in accordance with this clause 10, the Asset Liability Period shall continue until the date all amounts due to us have been paid in full.
- During the carrying out of any building works and beyond you will procure that there is an adequate buildings insurance policy in place. You must:
11.1 ensure that this includes the building works, their carrying out and all unfixed goods and materials in connection with the building works for, in every case, the full reinstatement or replacement costs
11.2 if requested, supply evidence to us of the insurance policy
11.3 ensure that if any of the building works or any materials or goods required for the works are destroyed or damaged, you may make a claim under the insurance policy and use any proceeds for rebuilding, reinstatement or replacement of the works;
11.4 you must not do or permit anything which may render the insurance policy void or voidable.
- You will pay and indemnify and keep us indemnified from and against all loss damage costs claims and any liability and expense in respect of any injury to or the death of any person damage to any property movable or immovable pollution or sign of likely pollution or disturbance or destruction of any rights easement or privilege or otherwise by reason of or arising out of the erection and completion of any building works or the condition existence or user of the works.
- You will permit us to enter the Property to view the state and progress of the building works provided that we are accompanied by your representative or contractor. We shall not interfere with progress of the building works and we will make any communications and representations only to you and not direct to your contractor.
- If your Capital Grant is to fund the purchase or enhancement of vehicles or equipment, only the following conditions will apply:
14.1 You must provide us with evidence that the vehicles or equipment are validly owned by you;
14.2 You must retain the vehicles or equipment for the duration of the Project and use them only for the Project;
14.3 You must not sell or dispose of the vehicles or equipment during that time without first obtaining our written consent and if required, you must pay us a share of the proceeds from any disposal; and
14.4 You must keep the vehicles or equipment safely, in good repair and condition and adequately insured for the duration of the Project.